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Do you remember what Peter Drucker said about managing the work? He said, “Do what you do best, outsource the rest”. His words become philosophy when it comes to Offshore Outsourcing.

Outsourcing is a ubiquitous element in modern-day business where 60% to 90% of work is delegated. Businesses get their work done by delegating tasks to people or companies who are experts in those tasks. These tasks include offshore data entry, virtual assistance, image labeling, etc. Through outsourcing, businesses are saving costs at a very high level without compromising productivity level.

Take a deep dive into the world of outsourcing and offshoring with the help of this blog. It aims to understand the functioning of offshoring and how businesses can benefit from it.

Let’s start! but know the basics of this outsourcing process first.

A. Explaining What is Offshore Outsourcing

Do you know what is outsourcing and what is its purpose? Well, In outsourcing, companies hire third parties to perform their task rather than hiring in-house experts. With the resemblance of this process, when a company outsources its work from a foreign third-party company then the process is known as offshore outsourcing.

But why companies would need to hire a foreign third-party company? To explain this, you must understand the taxation concept first. Companies can save taxes when they outsource from offshore locations because of the difference in taxation laws. Besides that, the objective of offshore outsourcing is to get the service done by low-cost labor without compromising quality.

B. Types of Services Available on Offshoring

Outsourcing opens up the door to excellence and business growth. Companies do not have to depend on their internal team for any of their work as they directly get the best service from outsourcing. When it comes to Offshore Outsourcing, companies can outsource four types of services.

I. Data Entry

With the growth of modern technology, maintaining the database becomes very crucial. Data entry is a skill to put the data accurately in the databases and update them on time. Remember that. data is an asset at present and the company that utilizes this asset properly will grow more in the future. Therefore, companies across the globe outsource data entry work from third parties to utilize their data.

Some of the commonly observed data entry offshore outsourcing examples are stated below.

  • Online Data Entry

To collect and compile data from the internet in a suitable format for easy access and storage.

  • Manual Data Entry

Documenting data in the database by manually putting them via the computer system.

  • Image Data Entry

Creation of a document full of images collected from different sources.

  • Bookkeeping Data Entry

Keeping records of financial transactions safely within the database.

  • Medical Data Entry

Digitizing medical records for easy accessibility, storage, and retrieval.

  • ERP Data Entry

Feeding the ERP system with the processed data to automate its operation.

  • Document Data Entry

Digitizing old documents into editable format and keeping them in the database.

  • Real Estate Data Entry

Keeping a digital record related to properly listing, valuation, legal files, etc.

  • E-commerce Data Entry

Managing the information related to e-commerce products and updating the e-commerce sites with that information.

II. Data Conversion

One of the main benefits of offshore outsourcing is easy data conversion from one format to another. This process is also known as exporting and companies outsource exporting services for various work. Some of these are;

  • PDF to Excel Conversion

converting PDF files into editable Excel files for easier updating work.

  • HTML Conversion

Preparing front-end code from the collected visual data.

  • ePub3 Conversion

Converting any document into ePub3 format for easier accessibility.

  • Mail Listing

Preparation of a list of mail and then covert the list into an Excel file.

  • eBook Preparation

Converting Word document into eBook format.

III. Data Processing

Companies prefer outsourcing when it comes to data processing work, which is quite complex in terms of work. Data processing simply means manipulating the data and converting the data into machine-readable format. The task of data processes via outsourcing and offshoring involves multiple aspects, which are;

  • Data Cleansing

Deleting corrupted, duplicate, incomplete, and incorrect files from the database and improving the format.

  • OCR Data Processing

Converting images into text or machine-readable format to give computers a vision.

  • Data Annotation

Labeling data with appropriate tags and creation of categories with different datasets.

  • Database Creation

Creation of a secure database by putting accurate and processed data.

IV. Data Extraction

Data extraction is a mixture of different processes used to collect data from different sources. Not only limited that, but companies also hire Offshore Outsourcing to make the datasets into accurate formats. This helps to assess datasets, validate data, and store crucial data with ease. Here are some of the data-extracting processes that companies prefer to outsource.

  • Data Capture

Capturing data from various websites, documents, processed datasets, etc.

  • Data Mining

Identifying patterns from the collected and processed datasets and creation of models.

  • Data Collection

Collecting processed data into different formats and creating databases.

  • Data Scrapping

Importing information from different websites into editable Excel format or spreadsheet or local files.

C. Benefits of Offshore Outsourcing

Outsourcing has become a popular medium for getting things done in the present business scenario. Many reasons associated with the popularity of outsourcing are there, especially for Offshore Outsourcing. Some of the major benefits are;

I. Cost-Efficient

Hiring a team of offshore data entry experts is much cheaper than recruiting an internal team for the same task. Besides that, outsourcing from Asian or under-developed countries is cheaper in terms of labor costs. The wage rate in these countries is less compared to American or developed countries. Therefore, outsourcing is a cost-efficient option for developed countries without compromising the quality of the work.

II. Round the Clock Service

The horizon of the internet is wider than business hours, which is maintained in outsourcing work. Hiring a team through Offshore Outsourcing can provide you with round-the-clock service. These experts will be available 24/7 on rotational shifts thus your business process will always continue. They can handle immediate technical needs and resolve them whenever needed.

III. Focus More on Core Activities

Do you know focusing more on the tasks you can do better will give you success rather than doing what you must do? It is confusing, right? Well, the core objective of offshore outsourcing is to help you with some particular work so you can focus more on your work. Businesses can delegate their tasks through outsourcing and then can focus on their core activities.

For example, suppose you are a farmer and produce fruits and vegetables, you sell your produce via an e-commerce website. Therefore, if you focus more on managing your e-commerce website then you have to compromise your farm work. Well, with Offshore Outsourcing, you can delegate your e-commerce management task and focus more on your core task, which is farming.

IV. Get Help from the Specialists

Finding specialists for a specific task in the domestic region sometimes becomes difficult. Even if companies find specialists they tend to charge more fees than regular. That becomes the main focal point of why companies prefer outsourcing. There are plenty of offshore outsourcing examples where companies have the best talents to serve their needs.

Some regions in Asia like India, the Philippines, and others offer the best service in data entry via offshore outsourcing. These countries have the best talents in terms of skilled data scientists, software management workers, IT specialists, etc. Their wage rate is way cheaper than in any other country and they are well-versed in the English. Therefore, outsourcing allows companies to inculcate the best talents into their jobs in an affordable price range.

V. Better Quality Control

Managing the quality of work with ease is one of the key benefits of offshore outsourcing. Sometimes companies go beyond their limitation in providing the best work for their IT projects. They end up losing control of their projects because they do not have the right people in the team, who can help to deal with the situation.

However, the situation can be different when companies hire an Offshore Outsourcing team. These teams have proper knowledge about the IT projects and they bring efficiency to the project. Therefore, whenever companies face difficulties in handling their projects outsourcing comes as a rescue in that time. It allows companies to utilize additional resources to resolve the issues and make the operation productive.

D. Difference Between Outsourcing and Offshoring

Outsourcing has become a popular medium for delegating crucial business tasks with ease. Businesses free up their vital resources including time, money, and manpower with this process. In return, businesses are getting the highest quality of work within time. Outsourcing can be classified into different categories but Offshore Outsourcing is the crucial of all.

Offshoring is a subpart of the outsourcing process in which companies hire companies from foreign regions to handle their projects. Companies mostly offshore data entry works from foreign companies as they are cheaper and easier to delegate. Well, that is a very thin line between offshoring and outsourcing which you have to understand first.

In outsourcing, companies can delegate their task to any third party, which may be an organization or not. However, in offshoring, companies shift their activities to any organization that provides outsourcing services. The demating line between outsourcing and offshoring is knowing who performs the tasks.

Employees of an organization perform the task in the case of offshoring whereas non-employees perform the tasks in outsourcing. Choosing Offshore Outsourcing significantly reduces the cost of the projects. Companies shift their business process virtually or physically to another country in offshoring projects.

E. Factors to Check Before Offshore Your Work

If you are now convinced that you can offshore projects to save costs then you must consider a few things first. It is a big decision for any company when they choose to offshore data entry work from a foreign country. However, the results are always great and in the last few decades, it has been fetching amazing results.

The list is down there that you must consider before you choose offshoring.

I. Time Zone and Culture

Do not ever try to underestimate the culture when you decide to shift your tasks to an offshoring company. Some countries are better at IT-related jobs whereas some companies are more better at manufacturing jobs. Besides that time zones also matter when it comes to Offshore Outsourcing for IT-related jobs.

II. Pricing Details

Negotiating a better price when it comes to choosing offshore data entry practices is a must. Each country has a specific price structure to offer work in outsourcing. Some countries offer less while some countries pitch higher prices for their work. Choosing the right one is where you have to ensure the quality of work and delivery time. You must get all your work done on time without compromising the quality of outsourcing.

III. Flexibility

Businesses do well when the process of operation becomes flexible and stable. The same concept applies to outsourcing work also and companies must prefer flexibility when they choose Offshore Outsourcing. Flexibility in outsourcing is crucial as the data entry process is not a constant process it goes through various updates. The more flexible the company will be it will increase the efficacy of the operation.

IV. Maturity of the Service Provider

The more experienced outsourcing service provider you will choose the more benefits of offshore outsourcing you will get. You need to check the standards of the company before delegating your task and you also have to check the experience of the company in doing that job. Hiring an outsourcing agency for your work is an important aspect that you must take seriously with quality decisions.

Lastly, companies in developed countries choose to offshore outsourcing work to save costs. Besides saving costs, this process also enhances the productivity level because of the skillful workers. Companies are getting all the tasks that they require from an expert level with this process. Because of these amazing reasons, outsourcing practices have been dominating the market for the last few decades.

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